MDH Grants
Management Update
Alyssa Haugen & DeeAnn Finley
8/26/15
Presenters
•Alyssa Haugen, Grants and Special
Projects Manager, Health Operations
Bureau
•DeeAnn Finley, LPH Policy and
Administration Specialist, Health
Partnerships Division
Welcome and Housekeeping
• Welcome
• Mute your computer
• Mute your phone
• Use the mute on your phone
or
• *6 to mute
• #6 to unmute
• Don’t put us on hold
Agenda
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Overview of MDH Grants
Indirect Policy
Subcontracting Guidelines
Invoice Naming
Master Grant Contract
Budget Modifications
Ideas for Future Updates
OVERVIEW OF MDH
GRANTS
How Funds Are Spent
Total FY 2014
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Budget of $595 million
Grants: $393 million (66%)
Payroll: $113 million (19%)
Non-payroll Operating: $89 million (15%)
Staffing
Base FY 2014-15 MDH Staffing Levels
• Total FTEs: 1,264
• General Fund FTEs: 135 (10.7%)
MDH Grants by the
Numbers
• $393 million administered
• 112 grant programs across 9
divisions
• 950 unique grantees
• 14% higher education (MERC)
• 35% nongovernmental
• 51% local government and tribes
MDH Sections Most Reliant on
Federal Funds
Section
Emergency Preparedness and Response
% of Funding
from Federal
Sources
99%
Infectious Disease Epidemiology
Prevention and Control
85%
Community and Family Health
81%
Health Promotion and Chronic Disease
65%
Minnesota’s Grants
Landscape
• Increased use of grants. More grants administered than
contracts, but fewer guidelines and standard review
processes.
• Office of Legislative Auditor report in 2007
• Focused on grants to nonprofits (about $1B in 2005)
• Ongoing issues during audits
• Inadequate oversight by agencies – fraud/misuse
reports received
• Fragmented, inconsistent, weak oversight
Calls for Increased Standardization
and Accountability
• Enterprise approach, but maintain local control
• Establish Office of Grants Management
• Formalize and require agencies to follow best
practices
• Require use of standard grant contract
• Basic grant policy standards
• Reimbursement payments preferred
• Financial reconciliations required at least once
during grant period
• Legislature shouldn’t mandate grantees in law
• Enhance use of competitive processes
• Mitigate conflict of interest
State of Minnesota Grant
Policies
• Comprehensive grants management policies
apply to all Executive branch agencies, boards,
commissions, councils, authorities and task
forces.
• 13 Policies – Aid government organizations and
nonprofits by establishing general guidance and
creating expectations.
• All Policies:
http://mn.gov/admin/government/grants/policie
s-statutes-forms/
Overview of State Grant
Policy Requirements
• Conflict of Interest Disclosure
• Grant opportunity notification & competitive process
• Grantee pre-award financial capacity reviews
• Executing and amending grant agreements
• Monitoring, reporting, grant progress and payment
• Grant closeout and evaluation
• State policies are broad, up to individual agencies to
operationalize ways to meet policy requirements and
not all agencies interpret the same way
Grant Agreement Training
• Office of Grants Management training on core
elements of a grant agreement:
http://mn.gov/admin/images/GrantAgreement.s
wf
• Training may be useful to understand terms and
conditions that will apply to state grantees.
• Federal terms and conditions also apply if
federal funds part of award – include any award
specific requirements in grant agreement.
Administering Grants @ MDH:
Draft and issue request for proposals
Organize & facilitate review teams
Conduct pre-award due diligence reviews
Develop program performance measures and
reporting requirements
• Draft agreements and amendments
• Monitoring progress (program and financial)
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Administering Grants @ MDH
Individual MDH program responsibilities:
• Develop RFP and grant terms
• Coordinate review teams
• Negotiate budgets and work plans
• Draft grant agreements
• Set reporting requirements
• Develop programmatic forms
• Monitor and reconcile grants
• Review and approve invoices
Centralized MDH responsibility:
• Budget check and encumbrance
• Legal agreement review
• Grant policy guidance and training
• Pay invoices
MDH Grant Policies
• All OGM policies apply to MDH Grants
• Some OGM policies have been modified for MDH
• Also issue grant guidance for info on specific stages of grant process
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Advance Payment Memo
Single and Sole Source Justification Form
Conflict of Interest Disclosure Form
Due Diligence Review – Policy 240.01
Organizations with Limited Fiscal Capacity, Policy 241.01
Grantee Monitoring for Nonprofits, Policy 238.01
NEW – Indirect costs
• OGM Policy Exception – Grants to local public health
INDIRECT POLICY
What about my indirect costs?
• Historically – variation within MDH
• New MDH policy for indirect costs
• New federal grant guidance 2 CFR 200
• Allow federal rate or 10%
• Admin costs should be direct billed to
line items
• Examples and handout
Federal Indirect Cost Rates
• How to obtain one? Should I obtain one? Is it
really worth it?
• One source of more information:
http://nifa.usda.gov/indirect-costs
• MDH cannot provide guidance or assistance to
help you obtain a federal rate
• Each fed agency has specific info – must apply
where you receive most federal funds
SUBCONTRACTING
Subcontracting
• Programs starting to use new language about
MDH and grantee responsibilities for
subcontracting
• Looking to have prior notice of work done by
others by notifying MDH during review or
budget negotiation process
• MDH does not provide legal advice on
subcontract terms and conditions
• See Handout
Subcontracting
• MDH grantee is responsible for meeting terms of
grant and actions of any subcontracts you approve
• Need to follow your organization’s standard
procurement practices
• Over $150,000 subcontract and federal funds – meet
specific procurement guidelines
• Monitoring process may still review subcontracts –
just because program isn’t individually “approving”
MDH may need to request a copy at any time
MASTER GRANT
CONTRACT
Master Grant Contract
• Every 5 years, MDH enters into a Master Grant
Contract with all CHBs.
• There is no funding attached to this contract.
• It serves as the legal foundation for subsequent
Grant Project Agreements with CHBs for all MDH
grant program funding.
• The Master Grant Contract is intended to
streamline the grant process between MDH and
CHBs.
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Master Grant Contract
• MDH will be amending the MGC to
address the new federal changes
• Probably end or 2015 to early 2016
• Do you need to do anything different until
then?
• May begin to see the Federal Cover Sheet
(handout) with new funds
INVOICE NAMING
Invoice Naming
• MDH implementing invoice naming
system for electronic fund transfers
(EFTs)
• This is based on DHS naming system
• Should start seeing soon on EFTs
• MDH will send or post a list of codes
Invoice Naming
Block
Block 1
Block 2
Description Department Grant Code
Examples
MDH
This information
will be sent to
grantees.
Grant Name
Local Public Health Grant
Temporary Assistance to Needy Families
Title V (MCH Block Grant)
State Health Improvement Partnership
Public Health Emergency Preparedness
Women, Infant and Children
Block 4
Funding Source
CFDA number
STATE
OTHER
Block 5
Payment type
R=reimbursement
A=Advance
S=Supplemental
Invoice
C=Correction/
Adjustment
Grant Code
LPHG
TANF
TitleV
SHIP
PHEP
WIC
Block 6
Invoice Period
Q12015
Jan2015
CY2015
SFY2015
Invoice Naming
MDH.LPHG.STATE.R.Q22015
This payment is for the Local Public Health grant for
the second quarter of 2015. The LPH Grant is state
funds. This grantees funds are reimbursed on a
quarterly basis.
MDH.SHIP.STATE.R.Jan2015 This payment is for the SHIP grant for the month of
January 2015. The SHIP grant is state funds and
reimbursed on a monthly basis.
MDH.PHEP.93.069.R.Q22015 This payment is for the PHEP grant for the second
quarter of 2015. The PHEP grant is federal funds so
this code includes the CFDA number. PHEP funds are
reimbursed on a quarterly basis.
BUDGET MODIFICATIONS
Budget Modifications
• Previous grant project agreements did not have
consistent language regarding budget
modification.
• MDH will now include consistent budget
modification language in the GPA template.
• If you submit a budget – this language will be
included.
• If you don’t submit a budget (less common) –
this language will not be included.
Budget Modifications
• (c) Budget Modifications. Modifications greater than 10 percent
of any budget line item in the most recently approved budget
(listed in 4.1(a) or incorporated in Exhibit B) requires prior
approval from the STATE and must be indicated on submitted
invoices. Failure to obtain prior approval for modifications
greater than 10 percent of any budget line item may result in
denial of modification request and/or loss of funds.
Modifications equal to or less than 10 percent of any budget line
item are permitted without prior approval from the STATE
provided that such modification is indicated on submitted
invoices and that the total obligation of the STATE for all
compensation and reimbursements to the GRANTEE shall not
exceed the total obligation listed in 4.1(b).
FUTURE TRAINING NEEDS
What else is new for
2015?
• Forms standardization
• Working to increase consistency
Input for Future Trainings
• Your ideas????
What is Next?
• Posting of PPT
• Posting of webinar recording
• Continue to send ideas to Dee
• Community Health Conference table
• Regional meetings
Questions?
Contact Information
Alyssa Haugen
Grants and Special Projects
[email protected]
651-201-5796
DeeAnn Finley
Health Partnerships Division
[email protected]
651-201-4551